Paystack, one of Africa’s most influential payments companies, is taking a decisive step beyond payments. The Nigerian fintech has acquired Ladder Microfinance Bank, marking its formal entry into regulated banking and lending. The move allows Paystack to hold deposits and issue loans directly, rather than relying on partner banks.
The newly acquired institution will be rebranded as Paystack Microfinance Bank (Paystack MFB) and will operate as a separate, fully regulated entity within the Paystack group. For a company best known for helping businesses accept payments online, this acquisition signals a broader ambition to become a deeper part of how money moves, is stored, and is accessed across Nigeria’s digital economy.
From Payments to Banking Infrastructure
Since launching in 2016, Paystack has focused on one core problem: making payments simple and reliable for African businesses. Today, hundreds of thousands of merchants use Paystack to collect money online, process subscriptions, and manage transactions.
But despite its scale, Paystack has always operated with limits. Under its switching and payments licence, the company could move money, but it could not keep it. Customer funds had to sit with partner banks, and Paystack’s ability to design lending or savings products was constrained.
The acquisition of Ladder Microfinance Bank changes that equation. With a microfinance banking licence, Paystack can now control more of the financial stack, opening the door to products that go far beyond payments.
Lending Starts With Businesses
According to Paystack’s Chief Operating Officer, Amadine Lobelle, the company will take a cautious and deliberate approach. Paystack MFB will start by offering loans to businesses, particularly those already using Paystack’s payment tools. Consumer lending will come later. This sequencing matters.
Business lending allows Paystack to leverage the data it already has transaction history, cash flow patterns, and payment behavior to make more informed credit decisions. It also aligns with Paystack’s long-standing focus on supporting small and medium-sized businesses.
In practical terms, this could mean:
- Working capital loans for merchants
- Short-term credit to smooth cash flow
- Embedded lending products directly tied to payment activity
Only after building confidence in this model does Paystack plan to expand into consumer loans and broader financial services.
Banking-as-a-Service Is Part of the Plan
Beyond lending, Paystack MFB will also roll out banking-as-a-service (BaaS) offerings. This means other companies especially fintechs building wallets, treasury tools, or financial apps can plug into Paystack’s regulated infrastructure rather than applying for their own banking licences.
In effect, Paystack is positioning itself not just as a fintech product, but as financial infrastructure for other builders. This mirrors a wider trend across global fintech, where platforms that once focused on a single function evolve into modular financial backbones for entire ecosystems.
A Strategic Pivot
While the acquisition feels significant, it is not entirely unexpected. Paystack has been exploring life beyond payments for years. In March 2025, it launched Zap, its first consumer-facing app, signaling interest in serving individuals not only businesses. Owning a microfinance bank, however, is a much bigger step than launching an app. It brings regulatory responsibility, balance sheet risk, and operational complexity. Paystack’s decision to acquire and own an MFB rather than partner with one suggests long-term commitment.
It also echoes a recent move by Flutterwave, which acquired Mono, a key infrastructure provider, rather than continuing as a customer. Across Africa’s fintech space, leading companies are increasingly choosing ownership over dependency.
What This Means for Nigeria’s Fintech Landscape
Paystack’s entry into lending adds pressure to an already competitive financial services market.
Banks, fintech lenders, and neobanks now face a player with:
- Deep merchant relationships
- Rich transaction data
- Strong brand trust
- Global backing
At the same time, regulators will be watching closely. Microfinance banks sit at the intersection of innovation and consumer protection, and execution will matter as much as ambition.
For Paystack, the acquisition of Ladder Microfinance Bank is about owning more of the financial journey, from payment to storage to credit. And for Nigeria’s fintech ecosystem, it is another sign that the lines between payments, banking, and lending are disappearing fast.
